Amendment to the Civil Code
Act No. 4122, enacted on December 9, 1933, amends the Philippine Civil Code by introducing Section 1454-A. This section stipulates that in contracts for the sale of personal property payable in installments, the vendor can cancel the sale or foreclose on the mortgage without refunding any installments already paid if the purchaser fails to pay two or more installments, provided there is an agreement to this effect. Furthermore, if the vendor opts for foreclosure, they cannot pursue the purchaser for any remaining unpaid balance. This provision also applies to leases with an option to purchase when the lessor chooses to terminate the lessee's enjoyment of the property.
Law Information
- Reference Number
- Act No. 4122
- Date Enacted
- Category
- Statutes
- Subcategory
- Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
December 9, 1933
ACT NO. 4122
AN ACT TO AMEND THE CIVIL CODE BY INSERTING BETWEEN SECTIONS FOURTEEN HUNDRED AND FIFTY-FOUR AND FOURTEEN HUNDRED AND FIFTY-FIVE THEREOF A NEW SECTION, TO BE KNOWN AS SECTION FOURTEEN HUNDRED AND FIFTY-FOUR-A
SECTION 1. The Civil Code is hereby amended by inserting between sections fourteen hundred and fifty-four and fourteen hundred and fifty-five thereof a new section, to be known as section fourteen hundred and fifty-four-A, which shall read as follows:
"SEC. 1454-A. In a contract for the sale of personal property payable in installments, failure to pay two or more installments shall confer upon the vendor the right to cancel the sale or foreclose the mortgage if one has been given on the property, without reimbursement to the purchaser of the installments already paid, if there be an agreement to this effect.
"However, if the vendor has chosen to foreclose the mortgage he shall have no further action against the purchaser for the recovery of any unpaid balance owing by the same, and any agreement to the contrary shall be null and void.
"The same rule shall apply to leases of personal property with option to purchase, when the lessor has chosen to deprive the lessee of the enjoyment of such personal property."
SECTION 2. This Act shall take effect on its approval.
Approved, December 9, 1933.
Cite This Law
Amendment to the Civil Code, Act No. 4122, Dec 9, 1933 (Philippines)
Amendment to the Civil Code, Act No. 4122 (Phil. 1933)
Related Laws
- Amendment to Art. 1387 of the Civil CodeAct No. 3922 • Sep 12, 1932 • Statutes
- Amendment to Sec. 1584 of the Civil CodeAct No. 3600 • Nov 29, 1929 • Statutes
- Amendment to Sec. 76 of the Code of Civil ProcedureAct No. 3615 • Dec 4, 1929 • Statutes
- Amendment to Sec. 735 of the Code of Civil ProcedureAct No. 3960 • Dec 2, 1932 • Statutes
- Amendment to Art. 1924 of the Civil CodeAct No. 4114 • Dec 7, 1933 • Statutes
- Amendment to Sec. 451 of the Code of Civil ProcedureAct No. 4108 • Dec 6, 1933 • Statutes
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